Will BP Pay a Higher Dividend in Q2?

BP’s first-quarter shareholder returns

BP (BP) released its first-quarter earnings results on April 30. It paid $1.4 billion in dividends in the first quarter.

BP plans to maintain an optimal balance between growth and shareholder returns. The company has provided regular dividends throughout the oil cycle. Given the improvements in its earnings and cash flows, the company has also shared its higher returns with its shareholders in the form of buybacks. In the first quarter, BP bought back $50 million worth of shares. In 2019, the company plans to buy back shares to offset its scrip dilution since the third quarter of 2017. The company’s buyback program is weighted more toward the second half of the year.

Will BP Pay a Higher Dividend in Q2?

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BP’s dividend payment in the second quarter

BP’s dividend payments have increased in the past few quarters. The company will pay a stable sequential dividend in the second quarter. BP will pay a dividend of $0.615 per American depositary share on June 21, 2019. It announced this dividend on April 30. BP’s second-quarter dividend payment represents a 3% rise over the dividend it paid in the second quarter of 2018.

BP’s dividend yield compared to its peers’

BP’s dividend yield is currently 5.7%. Royal Dutch Shell (RDS.A) has a relatively high yield of 6.0%. However, other integrated energy companies have lower yields.

ExxonMobil’s (XOM), Equinor’s (EQNR), and PetroChina’s (PTR) yields stand at 4.4%, 4.3%, and 4.1%, respectively. Eni (E) has a yield of 5.6%.